Mt. Gox payout: Is the Bitcoin price in danger?
The long-awaited payoff from Mt. Gox to creditors, which launches in July, has sent the crypto community into a frenzy. Some fear that the deposit of 142,000 Bitcoin, worth almost $9 billion, will have a negative impact on the Bitcoin price. But according to Alex Thorn, head of research at crypto financial services company Galaxy, those fears are likely exaggerated.
Why Mt. Gox doesn’t cause a Bitcoin crash
Thorn explains that only a small portion of the Bitcoin that is distributed will actually end up on the market. He estimates that only 64,000 BTC will end up in the hands of creditors. The rest of the Bitcoin is held by fund managers and Bitcoinica, a crypto exchange that is still in bankruptcy proceedings.
According to Thorn, it is unlikely that most creditors will sell their Bitcoin immediately. These are often early Bitcoiners who have held their digital assets for a long time. The fund managers who bought the claims of Mt. Gox users are mainly interested in holding their Bitcoin, because they are often invested in digital assets.
Over $9 billion in Bitcoin, but no fear
“It’s clear that this is a huge amount of Bitcoin,” Thorn said. “But I think the impact on the Bitcoin price will be limited. Most people who receive the Bitcoin intend to hold on to it, not sell it.”
Although the Mt. Gox payouts are attracting a lot of attention, the crypto community seems to be relatively calm about it. It seems that most players assume that the impact of this event on the Bitcoin price will be negligible.
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